* Greece immediate concern; Spain and Italy bigger problem
* Euro leaders must co-ordinate monetary and fiscal policy
* Global weakness linked to euro zone crisis
MADRID, Sept 13 The euro zone's leaders need to
show markets they are taking responsibility for its debt crisis
and work out how to tally monetary union with budget policy,
Spanish press reported U.S. President Barack Obama as saying.
Greece is the immediate concern, but an even bigger problem
is what may happen should markets take another run at the larger
economies of Spain and Italy, the EFE news agency reported Obama
as telling a roundtable with Spanish-speaking journalists in
"It is difficult to co-ordinate and agree a common path when
you have so many countries with different policies and economic
situations," Obama said, according to the report on the El Mundo
"In the end the big countries in Europe, the leaders in
Europe must meet and take a decision on how to coordinate
monetary integration with more effective co-ordinated fiscal
policy," the EFE Spanish-language report quoted Obama as saying.
U.S. Treasury Secretary Timothy Geithner is due to make an
unprecedented one-day trip to Poland this week to meet with euro
zone finance ministers as fears grow that Greece will soon
default on its debt.
Weakness in the global economy will continue so long as the
euro zone crisis is not resolved, Obama said.
Greece is "the biggest immediate concern", the report quoted
Obama as saying, but the biggest problem will be "what will
happen in Spain and Italy if the markets keep attacking these
very big countries."
A long-term solution is possible if markets believe euro
zone countries with budget surpluses are willing to back their
partners in the monetary union, he said.
The United States is deeply involved in consultations with
the euro zone over how to resolve the crisis, Obama said.
The euro zone debt crisis will be one of the major issues on
the table at the G20 meeting in France in November, he added.
(Reporting by Sonya Dowsett; editing by Patrick Graham)